25 Oct - 12 min read

Quarterly Review and Production Report for the period ended 1 July to 30 September 2021

Quarterly Review and Production Report for the period ended 1 July to 30 September 2021

ROYAL BAFOKENG PLATINUM LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2008/015696/06)
JSE share code: RBP
ISIN: ZAE000149936
(“RBPlat” or “the Company” or “the Group”)

   ROYAL BAFOKENG PLATINUM LIMITED QUARTERLY REVIEW AND PRODUCTION REPORT FOR THE PERIOD
                       1 JULY TO 30 SEPTEMBER 2021 (“REPORTING PERIOD”)

 RECORD QUARTERLY OUNCE PRODUCTION - UNDERPINNED BY STEADY OPERATING AND RAMP-
          UP PERFORMANCES DESPITE THE IMPACT OF THE COVID-19 THIRD WAVE

OVERVIEW
    -    No fatal incidents during the quarter
    -    Improvement in most key production metrics for the reporting period
          -   3.5% increase in tonnes hoisted
          -   7.7% increase in tonnes milled
          -   2.3% reduction in built-up head grade
          -   2.0% increase in 4E ounces
    -    228kt of ROM ore surface stocks
    -    Increase in cash operating costs and unit cost reflective of increased production and current operating environment
    -    7.8% decrease in capital expenditure, in line with project and operational requirements


HEALTH AND SAFETY
Ensuring the health and safety of our employees remains a key objective for the business, with our main focus areas
geared towards maintaining our health programmes, effectively managing COVID-19 and embedding a resilient safety
culture in our pursuit of zero harm.
All our COVID-19 protocols remain in place with good progress made on our vaccination programme since it was initiated
in July. To date, a total of 6 622 employees have been fully vaccinated, equating to approximately 63% of our workforce.
There were no fatal incidents in the reporting period and our operations achieved one million fatality-free shifts on the
28th of September. However, the impact of COVID-19 resulted in inconsistent manning levels and contributed to a
decline in our overall safety statistics, with our total injury (TIFR), lost time injury (LTIFR) and serious injury (SIFR)
frequency rates weakening quarter-on-quarter to 7.73, 1.77 and 0.97, respectively. For the year to date our TIFR, LTIFR
SIFR have increased to 7.58, 1.74 and 0.73 respectively, compared to the corresponding 2020 period.
The health, safety and wellbeing of our employees is paramount. As such, we remain committed to improving our safety
performance through ongoing development and strengthening of our key safety pillars, namely; leadership, design,
systems and behaviour.
18kt of ore production losses relating to safety stoppages were recorded in the quarter under review.


PRODUCTION
Notwithstanding the ongoing impact of the COVID-19 pandemic and the protracted third wave, which reached its peak
during July, the business achieved record 4E ounce production of 127koz for the reporting period. This has been
underpinned by steady BRPM performance and an improved Styldrift performance, marginally offset by lower grades
and concentrator recoveries.
Total tonnes hoisted for the reporting period increased by 3.5% to 1 340kt, whilst total tonnes milled increased by 7.7% to
1 248kt.
For the year to date, total tonnes hoisted amounted to 3 498kt, representing a 13.5% increase compared to the
comparative 2020 reporting period. Total tonnes milled for the year to date amounted to 3 408kt, a 22.5% increase
compared to the similar period in 2020.
Closing surface stocks at the end of the reporting period are estimated at 228kt.



Page 1 of 5
BRPM
Total tonnes hoisted and milled for the reporting period increased by 2.6% and 18.6%, respectively, to 682kt and 676kt.
Surface stocks reduced by 58kt or 46.8%. Closing surface stocks at the end of the reporting period are now estimated at
66kt.
Merensky tonnes milled for the quarter decreased by 7.9% to 384kt and reduced by 0.6% to 1 020kt for the year to date,
compared to the similar period in 2020. The reduction in the year-to-date Merensky volumes is attributable to increased
UG2 production as BRPM South shaft transitions to a UG2 biased operation, as its Merensky reserves deplete.
UG2 tonnes milled for the quarter increased by 90.2% to 291kt, whilst year-to-date tonnes milled increased by 80.8% to
828kt, compared to 2020. UG2 volumes represent 43% of total tonnes milled for the quarter and 45% for the year to date.
For the reporting period and year to date, the built-up head grade declined by 2.2% and 4.9% to 3.94g/t (4E) and 3.85g/t (4E),
respectively. The reduction is mainly attributable to the increased contribution of lower grade South shaft UG2.

STYLDRIFT
With the 230ktpm footprint completed and planned IMS flexibility in place, the focus is now aimed at developing and
embedding the operational maturity and associated efficiencies to enable the mine to sustainably achieve 230ktpm.
Notwithstanding COVID-19 impacting Styldrift’s ability to fully leverage its installed infrastructure capacity effectively,
total tonnes hoisted for the reporting period amounted to 658kt equating to a 4.4% increase compared to the
corresponding 2020 period. The average hoisting performance for the quarter amounted to 219ktpm, with a peak of
228kt.
Total tonnes milled for the quarter decreased by 2.7% to 572kt, with year-to-date milled volumes increasing by 20.2%
to 1 560kt. Closing surface stocks are estimated at 162kt.
The quarter-on-quarter and year-to-date built-up head grade declined by 2.0% and 3.3% to 3.84g/t (4E) and 3.83g/t
(4E), respectively, due to on-reef dilution challenges currently being experienced as the northern declines negotiate a
known fault zone.

CONCENTRATING
Total tonnes milled for the reporting period amounted to 1 248kt, representing a 7.7% increase compared to the
corresponding 2020 period. Merensky and UG2 tonnes milled amounted to 957kt and 291kt, respectively, with UG2
equating to 23% of total milled volumes. The BRPM concentrator treated 675kt, of which 35kt was UG2 (5%) while the
Maseve concentrator treated 446kt, of which 129kt was UG2 (29%). 128kt was toll treated during the period compared
to zero for the corresponding period in 2020. For the year to date, total tonnes milled increased by 626kt or 22.5% to
3 408kt.
The combined built-up head grade for the quarter and year to date declined by 2.3% and 4.2%, respectively, to 3.89g/t
(4E) and 3.84g/t (4E). The reduction in head grade is attributable to the increased contribution of the lower grade South
shaft UG2 from BRPM and the on-reef dilution challenges at Styldrift.
Overall 4E recovery performance remained in line with the reduced built-up head grade and increased toll treatment
with the quarter-on-quarter and year-to-date 4E recoveries declining by 3.2% and 2.1% to 81.36% and 81.48%,
respectively.
The combination of increased milled volumes, lower built-up head grade and associated reduction in recoveries achieved
during the quarter, yielded a 4E metals in concentrate increase of 2.0% to 127koz. 4E metals in concentrate for the year
to date increased by 15.0% to 342.8koz compared to 2020.
Equivalent 4E metals in surface stocks are estimated at approximately 25koz.


CASH OPERATING COSTS
Cash operating costs for the reporting period increased by 15.2% to R2 143 million and 20.6% for the year to date to
R5 735 million compared to 2020. The increase in expenditure is attributable to increased production volumes,
additional toll treatment expenses due to the delay in the Maseve MF2 upgrade and industry-related inflation.
The decrease in surface stocks, improved production, on-mine inflation, lower grade and associated recoveries have
resulted in a 1.6% decrease and 4.8% increase in cash unit cost per tonne milled and 4E ounce, respectively, to R1 683
(2020: R1 710) and R16 730 (2020: R15 963) for the year to date.
BRPM cash operating costs for the quarter and year to date increased by 20.2% and 22.7% to R1 052 million and
R2 847 million, respectively, in line with production volumes, UG2 toll treatment and on-mine inflation. Unit cash costs
per tonne milled and per 4E ounce for the quarter increased by 1.4% and 8.3% to R1 556 and R15 137, respectively.
Year-to-date unit costs have decreased by 1.4% to R1 541 per tonne and increased by 7.2% to R15 331 per 4E ounce
due to on-mine inflation and lower UG2 grades.

Page 2 of 5
Styldrift cash operating costs for the quarter and year to date increased by 10.6% and 18.5% to R1 091 million and R2
888 million, respectively, in line with production volumes, increased trackless fleet maintenance related costs and on-mine
inflation. The lower milled volumes, grade and associated reduction in recovery resulted in unit cash cost increases for the
quarter of 13.7% to R1 907 per tonne milled and by 18.7% to R18 941 per 4E ounce. Year-to-date unit costs have
decreased by 1.4% to R1 851 per tonne milled and increased by 2.2% to R18 372 per 4E ounce.
We expect Styldrift’s unit cash costs to reduce, becoming competitive with industry peer levels as further gains in
operational maturity, experience, business improvement process are made and final steady state volumes are
achieved.

CAPITAL
Total capital expenditure for the reporting period decreased by 7.8% to R421 million in line with project and operational
stay-in-business (SIB) capital requirements. Expansion capital expenditure for the quarter decreased by 62.5% to
R103.2 million compared to 2020, with the decrease in line with project schedule and construction progress at
Styldrift, Maseve concentrator MF2 upgrade and tailings storage facility expansions.
Notwithstanding the impact of Covid-19 on construction, good progress was made with the Maseve MF2 upgrade
related works during the reporting period. Construction works are now expected to be completed by early December
2021, subsequent to which commissioning of the upgrade will commence. The upgrade is expected to be fully
commissioned during the first quarter of 2022, yielding increased volume and recovery benefits. The Maseve plant
will be systematically ramped up to 180ktpm by the second half of 2022 as the circuit is optimised.
Replacement capital expenditure amounted to R178.1 million for the quarter and is attributable to the Styldrift
replacement project which is currently extending the footwall declines to the north, south and east beyond the original
expansion capital footprint to access, establish and secure the required ore-reserves to sustain production in the longer
term.
SIB capital increased by R32.7 million to R139.7 million equating to 6.5% of cash operating costs. The increase in SIB
expenditure is mainly attributable to increased Styldrift trackless fleet rebuild and strike belt extension related works.


FINANCIAL POSITION
As at 30 September 2021, the Company had net cash of R3 851 million, compared to a net cash position of
R3 625 million as at 30 June 2021. Cash movements for the quarter include the payment of a R5.35/share equating
to approximately R1 500 million interim dividend.
At the end of the quarter, RBPlat had no interest bearing borrowings outstanding, with approximately R3 000 million of
banking facilities available in addition to cash on hand. We have refinanced our banking facilities to a R1 000 million
General Banking Facility and a new 5-year R2 000 million Revolving Credit Facility.

COMPANY GUIDANCE
Group production guidance for the full year remains unchanged as communicated in our 2021 interim results. Subject
to any unforeseen operational disruptions, 4E ounce production is expected to be between 475koz and 485koz for the
year. Total cash operating costs per 4E ounce for the Group have been revised and are forecast to be between R16 100
and R16 400, compared to R15 825 and R16 150 previously.
Group capital expenditure is revised lower to R2.1 billion from R2.2 billion, with SIB expenditure between 6% and 8%
of operating cost for the year.




Page 3 of 5
                                                                          Quarter 3                                   YTD Sept
                                          Unaudited        Unaudited
                                                                          2021 vs.    Unaudited YTD   Unaudited YTD   2021 vs.
                                        quarter ended    quarter ended
Description                      Unit                                     Quarter 3   30 September    30 September    YTD Sept
                                        30 September     30 September
                                                                           2020 %         2021            2020         2020 %
                                            2021             2020
                                                                           Change                                      Change
Safety
  TIFR (/1000 000 hrs)           rate            7.73              4.47    (72.9)              7.58            5.15    (47.2)
  LTIFR (/1000 000 hrs)          rate            1.77              0.54    (227.8)             1.74            1.30    (33.8)
  SIFR (/1000 000 hrs)           rate            0.97              0.36    (169.4)             0.73            0.59    (23.7)

Production
Total tonnes hoisted              kt            1 340            1 295       3.5              3 498           3 083     13.5
  BRPM                            kt              682              665       2.6              1 820           1 603     13.5
  Styldrift                       kt              658              630       4.4              1 678           1 480     13.4

Total tonnes milled               kt            1 248            1 159       7.7              3 408           2 782     22.5
  BRPM                            kt              676              570      18.6              1 848           1 484     24.5
  Styldrift                       kt              572              588      (2.7)             1 560           1 298     20.2
  Merensky                        kt              957            1 006      (4.9)             2 580           2 325     11.0
  UG2                             kt              291              153      90.2                828             458     80.8
  % UG2 of total tonnes milled    %              23%              13%       76.9               24%             16%      50.0

Closing surface stocks            kt              228              310     (26.5)               228             310    (26.5)
    BRPM                          kt               66              124     (46.8)                66             124    (46.8)
    Styldrift                     kt              162              186     (12.9)               162             186    (12.9)

Built-up head grade (4E)          g/t            3.89              3.98     (2.3)              3.84            4.01     (4.2)
  BRPM                            g/t            3.94              4.03     (2.2)              3.85            4.05     (4.9)
  Styldrift                       g/t            3.84              3.92     (2.0)              3.83            3.96     (3.3)
  Merensky                        g/t            3.87              4.01     (3.5)              3.85            4.03     (4.5)
  UG2                             g/t            3.96              3.78      4.8               3.81            3.87     (1.6)

Concentrator recovery (4E)        %             81.36            84.03      (3.2)             81.48           83.19     (2.1)
 BRPM concentrator                %             82.35            85.14      (3.3)             82.46           84.62     (2.6)
 Maseve concentrator              %             80.10            82.01      (2.3)             80.32           80.37     (0.1)

Metals in concentrate produced

Total
  6E                             koz            142.4            138.1       3.1              384.4           331.4     16.0
  4E                             koz            127.0            124.5       2.0              342.8           298.0     15.0
    Platinum                     koz             81.9              80.7      1.5              220.8           193.4     14.2
    Palladium                    koz             34.0              33.3      2.1               91.8            79.3     15.8
    Rhodium                      koz               7.6              6.7     13.4               20.6            16.4     25.6
    Gold                         koz               3.5              3.8     (7.9)               9.6             8.9     7.9
Iridium                          koz               2.6              2.2     18.2                7.0             5.4     29.6
Ruthenium                        koz             12.8              11.4     12.3               34.6            28.0     23.6
Nickel                            kt            0.743            0.848     (12.4)             2.060           1.986     3.7
Copper                            kt            0.458            0.518     (11.6)             1.269           1.212     4.7

BRPM
  Total 6E                       koz             78.4              69.2     13.3              209.6           180.1     16.4
  Total 4E                       koz             69.5              62.6     11.0              185.7           162.3     14.4
    Platinum                     koz             44.3              40.3      9.9              118.0           104.5     12.9
    Palladium                    koz             18.7              16.8     11.3               50.0            43.3     15.5
    Rhodium                      koz               5.0              3.9     28.2               13.6            10.4     30.8
    Gold                         koz               1.5              1.6     (6.3)               4.1             4.1     0.0
Iridium                          koz               1.5              1.0     50.0                4.0             2.8     42.9
Ruthenium                        koz               7.4              5.6     32.1               19.9            15.0     32.7
Nickel                            kt            0.293            0.357     (17.9)             0.804           0.887     (9.4)
Copper                            kt            0.182            0.225     (19.1)             0.500           0.555     (9.9)
 Page 4 of 5
                                                                                                    Quarter 3                                     YTD Sept
                                                                Unaudited            Unaudited
                                                                                                    2021 vs.    Unaudited YTD    Unaudited YTD    2021 vs.
                                                              quarter ended        quarter ended
Description                                        Unit                                             Quarter 3   30 September     30 September     YTD Sept
                                                              30 September         30 September
                                                                                                     2020 %         2021             2020          2020 %
                                                                  2021                 2020
                                                                                                     Change                                        Change

Styldrift
  Total 6E                                          koz                     64.1             68.6     (6.6)             174.9            151.3      15.6
  Total 4E                                          koz                     57.6             61.8     (6.8)             157.2            135.6      15.9
    Platinum                                        koz                     37.7             40.3     (6.5)             102.8             88.8      15.8
    Palladium                                       koz                     15.3             16.5     (7.3)              41.8             36.0      16.1
    Rhodium                                         koz                      2.6              2.8     (7.1)                7.1              6.0     18.3
    Gold                                            koz                      2.0              2.2     (9.1)                5.5              4.8     14.6
Iridium                                             koz                      1.1              1.1      0.0                 3.0              2.6     15.4
Ruthenium                                           koz                      5.4              5.7     (5.3)              14.7             13.0      13.1
Nickel                                              kt                     0.450           0.491      (8.4)             1.256            1.099      14.3
Copper                                              kt                     0.276           0.294      (6.1)             0.769            0.657      17.0


Cash operating costs
Cash operating cost                                R’m                     2 143           1 861     (15.2)             5 735            4 757     (20.6)

  BRPM                                             R’m                     1 052             875     (20.2)             2 847            2 320     (22.7)
  Styldrift                                        R’m                     1 091             986     (10.6)             2 888            2 437     (18.5)


Cash operating cost / tonne milled                  R/t                    1 717           1 607      (6.8)             1 683            1 710      1.6
  BRPM                                              R/t                    1 556           1 535      (1.4)             1 541            1 563      1.4
  Styldrift                                         R/t                    1 907           1 677     (13.7)             1 851            1 878      1.4


Cash operating cost / 4E ounce                     R/oz                   16 874          14 948     (12.9)            16 730           15 963      (4.8)
  BRPM                                             R/oz                   15 137          13 978      (8.3)            15 331           14 295      (7.2)
  Styldrift                                        R/oz                   18 941          15 955     (18.7)            18 372           17 972      (2.2)


Capital expenditure
Total capital                                       R'm                    421.0           456.7       7.8             1 250.5          1 236.2     (1.2)
  Expansion                                         R'm                    103.2           274.9      62.5              451.7            829.5      45.5
  Replacement                                       R'm                    178.1             74.8    (138.1)            485.7            187.2     (159.5)
  Stay-in-business (SIB)                            R'm                    139.7           107.0     (30.6)             313.1            219.5     (42.6)
    BRPM                                            R'm                     29.3             17.0    (72.4)              66.6             56.5     (17.9)
    Styldrift                                       R'm                     87.4             24.1    (262.7)            217.3             72.9     (198.1)
    Maseve                                          R'm                      0.8              1.7     52.9                 1.3            11.0      88.2
    Concentrators                                   R'm                     22.2             64.2     65.4               27.8             79.1      64.9
  BRPM SIB as a % of operating cost                 %                        2.8              1.9    (47.4)                2.3              2.4     4.2
  Styldrift SIB as a % of operating cost            %                        8.0              2.4    (233.3)               7.5              3.0    (150.0)
* Please note any difference in totals in this table is due to rounding


  The information set out in this announcement has not been reviewed and reported on by the Company’s external
  auditors.

  Johannesburg
  25 October 2021
  JSE Sponsor:
  Merrill Lynch South Africa Proprietary Limited t/a BofA Securities

  For further information, please contact:
  Lindiwe Montshiwagae
  Executive: Investor Relations and Corporate Communications
  +27 (0) 10 590 4510
  lindiwe@bafokengplatinum.co.za




  Page 5 of 5

Date: 25-10-2021 01:01:00
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